Korea and Japan in the light of Global Management

Yukio The Institute of Management Hong-ik University 1998 Hongik business review Vol.2 No.-

Part 1. There have many arguments about traditional Japanese society. 1) At first Ruth Benedict in her "The Chrysanthemum and The Sword--Pattern of Japanese Culture", Boston(1946) opened a new field of Japanese Studies. These studies from the Western are recently handed over the four Revisionists such as Johnson, C., Prestowitz, C. V., Fallows, Wolferen, von Karl("The enigma of Japanese power", Hayakawa publishing, 1990, vols. Ⅰ,Ⅱ) 2) Some Japanese however have been the honest analysts aout their social structure. For example, Chie Nakane("A human relation of vertical society-theory of single society", Kodansha Gendaisinsho, 1967) and Takeo Doi("The structure of Lenience", Kobu-ndo, 1971) analysed the Japanese peculiar structure as the vertical society of lenience. 3) Form Asian sides two reserchers are distinguished of their Japanese studies from South Korea. One is Lee Oh-Lyon, "Japanese action to condense things"(Gakuseisha, 1982) and the other is Park Tyun-Hee, "Japanese passion to be greater"(Toshindo, 1986). I will consider these two contrast reserches here from now. This kind of my study is to succeed the method how the relation between cultural anthropoloty and economy developed by Dr. Michio Morishima("Why has Japan succeeded?" TBS Britannica,1984) is done. In this way I consider how two distinguished Korean intellects, Lee Oh-Lyon and Park Tyun-Hee see Japanese society just as Prof Michio Morishima, Karl van Macffelen do. 1) Prof. Lee is rather descriptive and historical, erudite, and he has a strong curiosity about Japanese traditional cultures. and he understands Japanese race perfectly as far as he makes Japanese naked. He starts his study on Japan and Japanese by " the condensed culture oriented". Though he cooks Japan well, he loves Japan best. 2) Prof. Park is more theoretical, and having a good command of ironical parodox he reached to Japanese "passion to be greater". He can't be free from the traces of invasion by the old imperialist Japanese. I suppose that Japanese economy has passed three times after wars, 1) the restoration age, 2) the higher growth, 3) the condensed low growth now. His paradoxical logic is built in comparison with colonial time before war and age of higher growth. and he loves Japan or Japanese lesser than Mr. Lee cherishs his passion to study. Japanese economy is now shrunken in a time of the condensed lowest growth. Is it a extended condensation or condensed expansion? It's a great problem. Their arguments show a dialectic approach to condensation and expansion of Japanese economy. Now it comes to orient indoor till now heavily. Power is indoor, justice is indoor, and secrets is kept indoor. I am afraid that globalization of Japan is defeated about 15 years late. Japanese education can be reformed bilingually both in English and in Japanese as early as possible. Though financial Big-Bang in Japan from April, 1998 puts up slogans of "Free, Fair and Global", all Japanese from administrators to companies and schools are already in economic corruption by monopoly of richness to the degree to unable to recover their morals easily. Next to boost Japanese economy the consumption tax of 5% had better be condensed to zero. And you can find now in Japan many global unbalances between economy and human, between domestic factions and foreign factions, between export and import, between finance and fundamentals, between production and consumption, between business and politics, between governing party and opposition party, between men and women, between the aged and children, between things and spirits, between goods and money, and among many village societies. The greatest one of theirs is in Japanese economy before bubble and after bubble. Many Japanese companies can't construct their independent personalities yet. The economy is heavily condensed now. Part Ⅱ Why has Japanese economy been succeeded after war? National income per a head in Japan reached to $40,000. But this development of capital doesn't mean the development of the nation. At first many persons had pointed out three styles of Japanese management. Secondly Dr. Morisima suggested Confucianism contributed to economic development in Japan. And thirdly recently Prof Noguti presented a new thesis that the system of 1940 before the War continued to work upon the Japanese economic development after the War. Then fourthly where has a democratic system gone which GHQ had planted Japanese economy after wars as Prof. Hashimoto says? Fifthly Mr. Wolfferen points out that such a democracy doesn't grow in Japan from the beginning. Now Japan problem changed from a miracle of Japanese growth to a miracle of Japanese depprestion after continued bubble in the Heisei. Did the bubble change human being? The New York Times write, "The very cause of Asian economic crisis isn't the speculaters or capitalists but Japanese government." We continued to see Japanese core of system or management in the light of global standard by Wolfferen, and its historical progress by Juro Hashimoto till now. Thy can he analysis Japanese society that is politically systematised? Maybe he can't find civil society in Japan yet. And he finds out that Japanese capital don't love the nation. It loves only the money. The system have priority over the interest of cooperates more than that of individuals. Now the super low rate of interest in Japan continues for four years. But it can't boost Japanese economy. And the increase of consumption tax completely got too cold the national consumption to recover. The allied over-loans without adequate moderation by Japanese giant banks have indulged their family big companies that have neglected an inovation of their management from now. The top management had eaten out the money in their company behind the back of shareholders. The monetary beaurocrats habe poured the public money into the giant companies behind the back of the nation while they have accunulated their powers. Such a Japanese polity is hostile to the nation. And all top managers in Japan are used not to take their responsibilies from the defeat of the Wars. They consider the men of sense of responsibility as stupid each other. The financial big bang of Japanese version lifts up three mottos, 1) free, 2) fair, 3) global from 1996. 11 to 2001. To where does a financial globalization which started in Japan come to advance?

On the Korean Management and Japan

Yu, Ki O The Institute of Management Hong-ik University 1997 Hongik business review Vol.1 No.-

part Ⅰ How do we can understand the problem of Korean management? There were two points of view about problem of Korean business management. It is said that the concept of Korean business management has a tendency to "individualism" by Professor Han in comparison with Japanese social collectivism that often forgets their family. But another Professor Kim insists it is described as "family egoism"? From where are these differences of their view-points? I considered into these opinions in this paper. I supposed Prof.Han was thinking of "top" management in Korean family trust. And I guessed that Pro.Kim was thinking a "middle and lower" management in Korean company under the control of the top management. If these concepts are in comparison with Japanese management, the social groups in Japan work hard sometimes with forgetting their own individualities and families. Japanese can make their works objectify in social group. Next I think that Korean economy must fasten to build the new system of high speed railway. It is too slow to develop public sectors in Korea because of its individualism or family egoism. of succesive President families. Till now I dissucued about Korean business management, but at last it relates how they manage giant family trust capital of Korea and public sectors of this country. part Ⅱ In the part 2 of this paper Ⅰ tried to consider into three theory that explained a secret of economic growth in Japan. After the comparison of these three view-points. I'll try to present my own ideas. Why has Japanese economy been succeeded after Wars? National income per a head in Japan reached to $40,000. buy this development of income doesn't mean the development of mind. Even now Japanese have no concern except economic work. Recently there are many arguments about such a Japanese success of economy. At first many persons had pointed out three styles of Japanese production management. Main three Japanese style of management for production which OECD"Report" in 1971 pointed out was 1)ranks and wages by seniority. 2)life-time employment (long-time stable employment), and 3)an union within enterprise or company. But at present such Japanese styles of management are breaking down, and it is only that development of material production is prior to development of intellectual production in Japan. But these vulgar three points neglect another important fact that Japanese management is done independently by average CEO without an organic connection to its ownership. Secondly Dr.Morisima suggested Confucianism contributed to economic development in Japan.. Dr.Morisima opens a new level of Social ethology of Economics in his study. At last he concludes a hypothesis of homo-economicas is far from the reality of Japan. And he suggests that he can find a clue that the Economics will be released from that hypothesis by studying the Japanese economy. For him this type study of comparative social psychoanalysis must be an important field of Economics. The capitalism is fit not only for the Western disposition but also for the Japanese disposition. And he understands how is the Japanese capitalistic economy different from the Western system of free enterprises based on a rational individualism and civil society with Christianity backing to the history of Japan. But now Japanese are free from traditional Confucianism, and it is melting out in Japanese minds day by day.Nation in Japan become attacking, violent and immoral. They are only obsessed with thing and money. And thirdly recently Prof Noguti Presented a new thesis that the system of 1940 before the Wars continued to work upon the Japanese economic development after the Wars. Pro.Noguti suggested that the high growth above 10% of Japanese economy in the nineteen sixties was realized not by reforms of post-war, but by system of 1940 in Japan(40年體制). Its system was introduced by the needs of war-economy artificially. However it is paralyze at present in 1997, and so he says that Japanese economy now must reform itself structurally. Japanese typed economy system which built in 1940 is changeable now. So nation must select future subjectively in a turning point. Japanese only remake great nature small for their interests in a name of electric and automobile convenience until now just like Sony. In general these three theories that have explained the success story of Japanese economy until bubble economy are declined to come back to its past of history. I am expecting that another approach, will come soon.

Economic Cooperation between Korea and India : Manager's perspective on the current status and the future

Sonu, Suk Ho The Institute of Management Hong-ik University 1997 Hongik business review Vol.1 No.-

Analysis of Interface Management Services for Extended Manufacturing in Korea

Yoo, Il Geon The Institute of Management Hong-ik University 1998 Hongik business review Vol.2 No.-

As far as the extensions of manufacturings concerned, there may be three problems to manage. Those are 1) the method of internal area extension, 2) that of external field extension, and 3) that of efficient management of these whole extensions. This paper deals with the above three problems. That is, how to decide the priority of the both extensions and how to operate them efficientely. To solve these problems, case studies of some companies in Korea are performed and analyzed. Especially, the examples of services as a tool of efficient operation are collected and examined to find out the role of services for the performance of high productivity and the value creation of a whole corperation. The service here means some management technics like information technology, data base and so on which make each extension cooperative for common goals. For the three problems, three categories are introduced and analyzed. Those are, the X-axis extension for internal extension, the Y-axis extension for external extension and the management services for the efficient operation of the extended as a whole.

A Corporate Accounting Approach for Improving Efficiency of Government Audit

Kim, Kyung Ho The Institute of Management Hong-ik University 1998 Hongik business review Vol.2 No.-

The study focuses on a possible improvement in the efficiency of the government audit and discusses and develops the role of and the ways in improving the efficiency of the government audit . Agency theory provides a basis for the analysis of commonness or differences between the audit for the government sector and the business sector. The theoretical analysis implies that the agency relationship between the shareholder and the management for a business enterprise is also applicable to the relationship between the general public and the government official for a nation, in which the government officials are the agents to the general public. Methodologically. this study attempts to import the major management or accounting concepts and techniques from the business sector and make these concepts and techniques applicable for government audit with the purpose of attaining improved efficiency of governmental audit. This study analyzes some financial accounting, management accounting and auditing concepts of the business sector which can also be utilized in the audit of governmental sector. This study concludes that the government accounting system currently oriented toward a traditional budgetary accounting structure for nonprofit accounting should be restructured to include more units which use business accounting structure. The study also suggests that the internal control systems for government accounting and audit as in the case of U.S. be more heavily relied upon to attain the objective of economical and efficient audit.

Production Planning Model with Uncertain Capacity and Nonstationary Demand

Kim, Keun-Chong The Institute of Management Hong-ik University 1999 Hongik business review Vol.3 No.-

The purpose of the current paper is to extend the results of Wang and Gerchak^7) for the case of nonstationary demands where the exact multi-period solution of the optimal production is impossible. They investigated a production planning problem in a periodic review environment with variable production capacity, random yields, and uncertain but stationary demand. Morton and Pentico^5) derived several upper bounds and a lower bound for a nonstationary stochastic periodic review inventory problems with proportional costs. Using their results to our case, we can derive several upper bounds and an analogous lower bound for variable production capacity, random yields, and nonstationary demand case.

Straight Debt Offerings and Earnings Expectation Changes

Chung, Han Kyu,Yoon, Pyung Sig,Kim, Chul Joong The Institute of Management Hong-ik University 1997 Hongik business review Vol.1 No.-

This paper examines analysts' earnings forecast revisions around announcements of 202 straight debt offerings over the period from 1976 to 1986. We measure earnings expectation changes using analysts' earnings forecasts obtained from the I/B/E/S database. Eckbo (1986) suggests that straight debt offerings do not release new information regarding the firm's future prospects while Hansen and Crutchley (1990) document that the straight debt issuers exhibit significantly negative abnormal earnings in the financing year and in the 3 postfinancing years. The predictions made by theoretical papers are also mixed. Ross (1977), Leland and Pyle (1977), and Heinkel (1982) suggest that an unanticipated increase in financial leverage signals positive expectations concerning the firm's future earnings prospects. On the other hand, Miller and Rock (1985), Myers and Majluf (1984), and Jensen (1986) suggest that external financing reveals negative information regarding future earnings. We document that the forecasts of the current-year earnings are, on average, unchanged whereas the forecasts of the five-year growth rate of earnings are significantly downward revised. Our results show that straight debt offerings convey unfavorable information regarding the firm's long-term, but not its short-term earnings prospects. Further, analysts' revisions of long-term growth rate of earnings are marginally significantly related to the stock price reaction. We also document that stockholders of the issuers suffer a significant loss of about 20% over the five-year post-offering period. Our finding is interesting because Brous (1992) documents that equity offering announcements convey unfavorable information regarding the firm's short-term but not its long-term earnings prospects. Our finding provides direct evidence on what information is conveyed through straight debt offerings.

A Study on the Contract Costs and Maturity Structure of Debt

Yi, Jae-sun The Institute of Management Hong-ik University 1999 Hongik business review Vol.3 No.-

Expanding on ideas implicit or explicit in Fama(1990), this paper develops an empirical prediction with respect to the maturity structure of debt securities in the context of the overall contract structure of a firm. I develop a hypothesis that higher fractions of fixed-payoff contracts should result in shorter maturities of debt securities. Using Compustat data, supporting evidence is found for this specific prediction implied by Fama's contract-cost hypothesis of financing decisions.

Review of IFCs 3 year duration US Treasury P2 benchmark

Shin, Sung-Hwan The Institute of Management Hong-ik University 2001 Hongik business review Vol.4 No.-

Myopic Bounds for the Random Yield and Nonstationary Stochastic Leadtime Demand Problem

Kim, Keun-Chong,Song, Young-Hyo The Institute of Management Hong-ik University 2001 Hongik business review Vol.4 No.-

The purpose of the current paper is to combine the results of Morton and Pentico^3) Anupindi et al.^4) for the nonstationary stochastic leadtime inventory problem with recent works of Kim^12,13) which considered the production capacity, random yields, and nonstationary demand, and a production planning model under JIT delivery contracts. We can obtain myopic, and near-myopic heuristic upper and lower bounds for the case of nonstationary stochastic leadtime demands with random yields due to the variable production capacity.